Let’s take a minute to appreciate how far we have come in this process already. If you have been following the actions outlined in this series so far you have worked your way through more than a third of the curriculum already. The diagram below illustrates your progress so far and the path ahead:
Source: Financial Exam Academy (Based on the CFA® exam – level 1 curriculum – December 2013 Exam)
This may be a good time to pause for a moment, and remind yourself what is your key purpose for taking this test? (in case you have forgotten in the midst of it all). Remember “if you really want to do something, you will find a way, if you don’t you will find an excuse.
The week to come:
This week we are facing our first challenge with the much dreaded Financial Reporting and Analysis (FRA) topic area. FRA is the largest topic area for the exam at roughly 20% curriculum and estimated exam weights. There is no reason to despair as we will break the topic down into manageable chunks, and this first week will likely feel like a little bit of a “vacation” in terms of reading intensity following the extensive economics readings (we are “only” going to cover about 4.5% of the curriculum this week).
The study session that we are tackling this week is rather descriptively called: “Financial Reporting and Analysis: An Introduction”. It is a pretty light read with plenty of examples exhibits and an optional segment in the second reading. We are going to use our tried and tested study approach to master this material:
- Please ensure that you attempt the end of chapter questions as a lead-in to each reading. As you answer the questions make a list of the questions that you find particularly puzzling (especially whenever you resort to guessing). Review your answers thoroughly (particularly those that you got wrong) and add these questions to your list.
- Also please ensure that you write down the LOS on flashcards, and answer the questions on the flipside (marking the page number) as you work your way through each reading. Also create flashcards with any key concepts and formulae that you come across. The combined effort of question practice, LOS statement, key concept and formula hunting will ensure that your mind has been primed for seeking out the most important information as you progress through each reading.
- Lastly as you wrap up each reading attempt only the tricky end of chapter questions from your list. Remove those answers that you can now confidently answer correctly from the list, and if there are any left read the explanations thoroughly before you redo. Continue this process until you have mastered all of the end of chapter questions.
Going through this process for each and every reading is bound to help distinguishing yourself from other candidates. Mastering the level 1 CFA® exam is all about having an effective study approach and allocating the necessary time required for success.